Casino operator Wynn Resorts, which applied this month to raise up to US$2 billion from a Hong Kong stock market listing of its Macau business, beat expectations with its second-quarter results despite slumping volumes.
Cost cutting in Macau and Las Vegas preserved the Nasdaq-listed firm's bottom line profit in the three months to June, successfully offsetting Wynn's declining revenues in both cities.
Contracting numbers of tourist arrivals to Macau appear to have taken a toll on the mass market casino revenue during the period, while the house played less lucky than previously against the high rollers who account for a large share of Wynn Macau's business.
Still, the Wynn Macau booked better than expected operating profit of US$73.66 million for the period, down 28.6 per cent from a record quarter a year earlier but up 6.1 per cent from the first quarter.
The sequential increase in operating profit at the 600-room Macau property came despite a slump in revenue, which fell 8.5 per cent from the previous quarter to US$410.4 million.
'The revenue in Macau was below our estimates but a strong focus on cost controls and lower promotional expenses drove the upside,' Susquehanna International Group gaming analyst Robert LaFleur wrote yesterday in a research note.
Mass-market drop at the Wynn Macau, or betting volumes on the public gaming floor, fell 23.3 per cent from a year ago and 4.2 per cent from the first quarter to US$481 million.
